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How involved are you when purchasing a new product or service? This lesson will take a look at the different levels of consumer involvement in the decision-making process.

Consumer Involvement

Think about the last time you made a purchase. How involved were you in the decision making to make the purchase? Was the product or service something you invested a lot of time researching, or did you just go out and buy it? Consumer involvement is the state of mind that motivates a consumer to make a purchase, or the importance a consumer places on a product or service. There are different levels of involvement a consumer can have in the decision-making process and different factors that influence that involvement.

Levels of Involvement

Sally is looking into purchasing a house. This requires Sally to do research on the neighborhoods she wants to live in, the schools in the area, the type of house, the distance the house is from her work, and so on. This type of purchase requires a high level of involvement. Depending on the type of purchase and how important the product or service is to the person impacts the level of involvement.

Low Involvement: These type of decisions are considered habitual decisions and are products or services that a person buys on a regular basis and does not have to do any research on. For example, a low-involvement decision can include groceries, laundry detergent, and household items that are purchased all the time, and the consumer already knows what they want to buy.

Medium Involvement: These type of decisions are considered simple decisions that are made in the store and not over a long amount of time. A product or service that only requires medium involvement can include a new pair of shoes. The consumer will be more involved than they were with household products, but they are not necessarily doing research on the new shoes they want to buy. They will go to a store and try on different pairs of shoes until they find the pair they want.

High Involvement: These types of decisions take time and require research. Typically, the more money a consumer is going to spend on a product, the more involved they will be in the decision-making process. These types of purchases can be expensive jewelry, vacations, cars, and houses. The consumer will not make the decision in an instant, but instead will compare products or services and eliminate their risk.

Factors Influencing Involvement

You probably don't even realize all of the factors that influence your purchasing decisions. There are many factors that can impact a consumer's decision-making process when it comes to buying a new product or service. As we discussed before, the situation in which the consumer is buying the product is one factor. There are also other factors that play a role in purchasing decisions, such as personal factors and psychological factors. Let's take a look at each factor.

Situational Factors: These factors include the lifestyle of a consumer, use of the product or service, and the occasion for making the purchase.

Personal Factors: These factors include the age of a consumer, location, and purchasing power. For example, a twenty-year-old's purchasing decisions are very different from that of a seventy-year-old's purchasing decisions. The location a consumer lives in can also impact what products they buy. In Arizona, there is no need for seat warmers or cars that are made to handle snow. Lastly, the purchasing power of a consumer has a huge impact on whether they can afford to buy something or not.

Psychological Factors: This includes how motivated the person is to make a purchase. There are also psychological factors that can influence a consumer's decision-making process. This will depend on the necessity of an item and how motivated the person is to go out and buy it. For example, Dennis currently has a bed but has been looking into buying a new bed for four years. He does not need a bed since he has one, so the necessity is low. The decision-making process comes down to how motivated he is to make the purchase.

Lesson Summary

Every consumer is different when it comes to their decision-making process. However, there are different levels of involvement. Consumers can have a high, medium, or low involvement in the decision-making process when it comes to purchases. There are many factors that impact the level of involvement, including personal, situational, and psychological factors.

Summary:

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